Garment sector prospers

11 Jan '06

2 min read

Garment and textile industry is booming as Vietnam National Textile and Garment Corporation, Vinatex, one of the country's top garment manufacturers recorded a growth of 10.9 percent over 2004 to reach the US $10 million mark, for 2005.

The company also saw export turnover of $896 million, a 9.7 percent rise over 2004.

Vu Duc Giang, Deputy General Director, informed that the members were able to earn a VND151.3 billion in profit, almost 61 percent more than that in 2004.

Vinatex secured 100,000 jobs with an average monthly income of VND1.48 million per person.

This year Vinatex, which has more than 50 member companies and subsidiaries, plans to produce 570 million square meter of silk, 137.6 million in knitwear and more than one billion apparels.

It aims to increase the localization rate among its garment items to 45 percent from 40 percent in 2005 and also generate a 12.4 percent raise in export revenue.

Vietnam's garment and textile sector has targeted increased investment as well as forming raw material centres and apparel-specific industrial parks to raise domestic production capacity and material supplies.

Due to the fierce competition from China, even after the termination of quotas, Vietnam exports did not register significant growth.

Besides, the local textile and garment industry faces problems in the form of acute shortage of labourers and the potential threat of dumping lawsuits from the European Union, in particular.

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